Michael Kors Holdings to Acquire Gianni Versace SpA

Executive Summary

Michael Kors (Kors) gained a foothold in the world of elite European fashion on Tuesday by striking a $2.12 billion deal to acquire Versace.

• The deal is to close in 4th quarter of FY2018, 1st quarter of calendar year 2019; following the deal, Kors will change its name to Capri Holdings Limited.
• By expanding its brand portfolio, Kors alleviates the pressure on any one brand to drive overall corporate results.
• Versace brings with it authentic Italian heritage, flashy fashion POV and social media savviness, and the opportunity to expand its accessories business.